LANXESS and Dutch company Royal DSM N.V. have reached an agreement in principle involving the sale of DSM Elastomers to LANXESS for €310 million (~ $432 million) on a cash and debt-free basis. DSM Elastomers produces the synthetic rubber ethylene propylene diene monomer (EPDM) under the brand name Keltan.
The transaction contracts will be finalized after a consultation process with the employees’ representatives of DSM in the Netherlands has been completed. The transaction is subject to approval from antitrust authorities. Closing is expected in early 2011.
“We look forward to welcoming DSM’s professional EPDM team, as well as its impressive assets to our core synthetic rubber activities,” said Axel C. Heitmann, CEO of LANXESS. “The transaction will also be an important step toward our goal of achieving roughly €1.4 billion (~ $1 billion) EBITDA pre-exceptionals in 2015.”
“The sale of DSM Elastomers completes our Vision 2010 strategy to become a focused life sciences and materials sciences company,” said Feike Sijbesma, CEO/chairman, DSM Managing Board.
For additional details, visitwww.lanxess.comor www.dsm.com.